NASDAQ$IPGP

Ipg Photonics Corp. · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

IPG Photonics experienced revenue growth driven by improved demand in Europe and the U.S., along with growth in emerging products and applications.

IPG Photonics reported strong Q3 2021 results with revenue of $379 million and earnings per diluted share of $1.40. The company saw increased demand in welding applications across most geographies and higher revenue in cutting in North America and Europe, as well as emerging products and applications.

  • Third quarter revenue increased 19% year over year to $379 million.
  • Earnings per diluted share (EPS) increased 112% year over year to $1.40.
  • Sales increased 50% in Europe and 55% in North America, while decreasing 7% in China.
  • Book-to-bill was slightly greater than one, indicating strong demand from emerging products and applications.

Headline financials

Total Revenue

$379M

Previous: $318M+19.1%
EPS (adj)

$1.40

Previous: $1.29+8.5%
Gross Margin

49.0%

Previous: 48.0%+2.1%
Operating Margin

26.9%

Previous: 13.0%+106.9%
Capital Expenditures

-$93.9M

Previous: -$61.9M-51.7%
Free Cash Flow

-$18.5M

Previous: -$26.3M+29.7%
Net Income

$75.4M

Previous: $35.6M+111.8%
Operating Income

$102M

Previous: $41.4M+146.3%
Gross Profit

$186M

Previous: $153M+21.7%
Cash & Equivalents

$795M

Previous: $764M+4.1%
Total Assets

$3.14B

Previous: $2.79B+12.5%
Stock-Based Comp

$9.86M

Previous: $8.74M+12.8%

Revenue & EPS history

IPG Photonics · Revenue · Quarterly

$379M

Q3 2021+19.1%vs Q3 2020
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

IPG Photonics · $379M total across 2 segments · Q3 2021

  • Materials Processing
    $345M+19.0%
  • Other Applications
    $34.1M+17.7%

Forward guidance

For the fourth quarter of 2021, IPG expects revenue of $330 to $360 million and earnings per diluted share in the range of $1.00 to $1.30.

Tailwinds

  • Strong demand from emerging products and applications.
  • Benefit from macro trends such as investments into EV, clean energy and automation.
  • Growth prospects in EV applications.
  • Growth prospects in medical applications.
  • Growth prospects in handheld laser applications.

Headwinds

  • Ongoing weakness in cutting applications in China.
  • Government and Company measures implemented to address the COVID-19 pandemic.
  • Supply chain constraints.
  • Product demand.
  • Order cancellations and delays.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

-0.7%

Avg return

Earnings day

-0.9%

Avg return

5 days after

-2.3%

Avg return

30 days after

43%

28 / 65 earnings

Positive

+35.5%

Q4 2025

Best reaction

-26.2%

Q2 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-25.1%-14.6%+0.1%
Q4 2025+35.5%+21.6%+0.0%
Q3 2025-0.2%-2.3%-9.9%
Q1 2025-13.0%-4.7%+8.4%
Q4 2024-5.5%-5.7%-11.7%
Q3 2024+5.1%+3.8%-2.5%
Q2 2024-8.2%-18.5%-21.0%
Q1 2024-5.7%-2.1%-3.9%
Q4 2023-15.2%-16.5%-16.0%
Q3 2023+4.0%+9.8%+14.4%
Q2 2023-15.1%-17.2%-17.6%
Q1 2023+0.7%+0.2%-6.4%
Q4 2022+16.5%+16.6%+6.5%
Q3 2022+2.6%+2.5%+8.3%
Q2 2022-3.9%-5.4%-16.0%
Q1 2022+10.7%+1.9%+5.9%
Q4 2021-4.1%-6.7%-20.5%
Q3 2021+7.6%+5.0%-0.5%
Q2 2021-17.3%-16.5%-20.3%
Q1 2021-10.4%-6.7%-5.0%
Q4 2020-6.1%-7.2%-16.7%
Q3 2020+1.9%+3.6%+8.8%
Q2 2020-7.4%-9.3%-9.3%
Q1 2020+21.1%+27.7%+35.5%
Q4 2019-5.2%-7.7%-23.7%
Q3 2019-7.1%-2.9%+0.7%
Q2 2019-6.0%-15.0%-12.0%
Q1 2019-1.3%-0.9%-25.7%
Q4 2018+8.8%+12.8%+8.9%
Q3 2018+1.7%+11.0%+7.6%
Q2 2018-26.2%-24.0%-23.0%
Q1 2018+6.3%+9.5%+13.3%
Q4 2017-7.7%-4.3%-4.7%
Q3 2017-0.6%+3.0%+10.3%
Q2 2017+6.2%+5.3%+15.2%
Q1 2017+6.9%+5.6%+11.1%
Q4 2016+4.9%+2.9%+3.5%
Q3 2016+14.2%+12.2%+14.8%
Q2 2016+0.0%-1.5%+3.3%
Q1 2016-15.6%
Q4 2015-2.5%
Q3 2015+11.7%
Q2 2015+16.8%
Q1 2015-2.2%
Q4 2014+9.4%
Q3 2014+5.9%
Q2 2014+8.3%
Q1 2014-5.2%
Q4 2013+1.6%
Q3 2013-9.1%
Q2 2013-0.7%
Q1 2013-9.1%
Q1 2011+2.6%
Q4 2012-10.6%
Q3 2012-5.4%
Q4 2011+10.5%
Q2 2012+11.9%
Q1 2012+11.0%
Q4 2009-6.1%
Q1 2010-6.1%
Q3 2011-7.1%
Q3 2010-7.1%
Q4 2010-4.0%
Q2 2010-4.0%
Q2 2011-4.0%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro